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Franchising can be a powerful pathway to business growth, but it also presents legal risks that necessitate careful planning and the guidance of experienced counsel. Whether you are a first-time franchisee signing your initial agreement, a multiunit operator managing complex leases, or a seasoned owner facing a dispute with your franchisor, you need trusted legal guidance from a franchise law law firm near you.
At Luther Lanard, PC, our Pennsylvania franchise law law firm near me attorneys serve franchisees throughout Philadelphia, Montgomery County, including Plymouth Township, Whitemarsh Township, and the surrounding region. We have successfully represented clients across the U.S. and internationally, from single-unit operators to corporate groups owning hundreds of locations.
Why Franchise Law Demands Focused Legal Knowledge
Franchise law is a distinct and highly regulated area of practice, governed by a mix of federal regulations, state contract laws, and the specific terms of the franchise agreement. These agreements are often dense and complex, containing provisions that can significantly impact a franchisee’s operations, rights, and liabilities.
At Luther Lanard, PC, franchise law is all our firm does. We focus solely on protecting franchisees. With more than 50 years of combined experience, our attorneys have helped clients navigate every stage of the franchise lifecycle. We understand the systemic power imbalance between franchisors and franchisees and are committed to leveling the playing field through strategic advocacy.
Navigating Your Franchise Agreement is Your Foundation for Success
Your franchise agreement is the foundation of your business. Our franchise law firm near you provides in-depth franchise legal reviews to help you understand what you are signing and how it may affect your future operations. Our review process includes:
Comprehensive Franchise Disclosure Document (FDD) Analysis
The FDD is a comprehensive document that provides prospective franchisees with critical information about the franchisor, the franchise system, and the proposed franchise relationship. We meticulously analyze each of the 23 items within the FDD, highlighting potential red flags, hidden costs, and restrictive covenants. We help you understand the franchisor’s financial health, litigation history, and any significant operational changes that could impact your investment.
Clear Translation of Legal Language
We break down the complex legal language of the franchise agreement into understandable terms. We identify key provisions related to your rights, obligations, territory, training, support, renewal, and transfer. We also scrutinize clauses that may seem innocuous but could have significant long-term implications, such as those related to indemnification, advertising funds, and default provisions.
Negotiation Opportunities
While many franchisors present their agreements as non-negotiable, our experience often reveals opportunities for favorable adjustments. We strategize with you to determine which aspects of the agreement are negotiable, such as territory protection, renewal terms, or specific fees. We leverage our knowledge of industry standards and common franchisor practices to advocate effectively on your behalf.
Forward-Thinking Strategies
Our review goes beyond simply explaining the terms. We anticipate potential issues that may arise during the life of your franchise, such as system changes, supply chain disruptions, or new competitive pressures, and help you understand how the agreement addresses or fails to address them.
You Also Need Other Essential Agreements
Beyond reviewing your franchise agreement, our firm provides a wide range of franchise-related legal services, including:
Multiunit Agreements
Multiunit agreements present a unique set of complexities for franchisees looking to expand their footprint. We help you understand the obligations and opportunities associated with developing multiple units, including development schedules, performance clauses, and options for future expansion. We negotiate terms that align with your growth strategy and protect your investment across multiple locations.
Business Formation
Establishing the right legal entity for your franchise is a critical first step. We advise on and facilitate the formation of corporations, LLCs, and other business structures, ensuring your entity provides appropriate liability protection and tax advantages for your specific franchise operation.
Lease Review and Negotiation
Your commercial lease is often as crucial as your franchise agreement. We meticulously review lease terms, paying close attention to provisions related to rent, term, renewal options, maintenance responsibilities, and tenant improvement allowances. We negotiate favorable lease terms that protect your interests and align with your franchise’s operational needs.
Buying and Selling Franchises
Whether you are looking to acquire an existing franchise or sell your current one, the transaction involves intricate legal processes. We guide you through the due diligence, negotiation, and closing of these complex transactions, ensuring you meet all legal requirements and safeguard your interests.
Investment Due Diligence
For prospective franchisees, comprehensive investment due diligence extends beyond just the FDD review. We assist with investigating the franchisor’s reputation, financial stability, and market standing, helping you make informed investment decisions. This includes reviewing financial performance representations, talking to existing franchisees, and analyzing industry trends.
Outside General Counsel
Many franchisees find it beneficial to have ongoing legal support without the cost of in-house counsel. We serve as your outside general counsel, providing proactive legal advice on day-to-day operational issues, compliance matters, and strategic planning. This ongoing relationship ensures you have a trusted franchise law firm near you readily available to address any questions or challenges that arise.
Franchise Dispute Resolution
Even with the most meticulously reviewed agreements, disputes can unfortunately arise in the franchise relationship. When conflicts emerge, swift, strategic, and decisive legal action is often necessary to protect your business and investment.
At Luther Lanard, PC, we are seasoned litigators and skilled negotiators dedicated to achieving the best possible outcome for our franchisee clients. We have a proven track record of successfully resolving various franchise disputes, including:
Breach of Contract
The franchise agreement outlines the franchisor’s and franchisee’s obligations. When either party fails to uphold their contractual duties, it can result in significant damages. We represent franchisees in claims involving franchisor breaches, such as failure to provide promised support, training, or marketing, or imposing unauthorized fees. We also defend franchisees against alleged violations by the franchisor, ensuring fair and just resolution.
Fraud and Unfair Trade Practices
Franchise offerings are subject to strict disclosure requirements designed to prevent misrepresentation and deceptive practices. If a franchisor has engaged in fraudulent activities or unfair trade practices that have harmed your business, we will aggressively pursue claims for damages and other remedies. This can include instances where the franchisor provided misleading financial projections, concealed critical information, or engaged in deceptive marketing.
Termination and Non-Renewal
The termination or non-renewal of a franchise agreement can be devastating for a franchisee. We represent franchisees facing improper termination attempts by franchisors, challenging the franchisor’s grounds for termination and seeking to preserve your rights. We also assist franchisees in navigating the non-renewal process, ensuring fair treatment and appropriate compensation if the franchise is not renewed.
Exiting a Franchise
Sometimes, exiting a franchise gracefully is the best course of action. Whether due to declining performance, a desire to pursue other opportunities, or irreconcilable differences with the franchisor, we guide franchisees through the complex process of exiting their franchise. This includes negotiating termination agreements, addressing post-termination obligations, and minimizing potential liabilities.
Franchise Encroachment
A core expectation of many franchisees is a protected territory. When a franchisor establishes a new company-owned unit or grants a new franchise near an existing franchisee’s territory, it can constitute unlawful encroachment, dismantling your sales and harming your business. We vigorously protect franchisees against encroachment, seeking injunctions, damages, and other appropriate relief to safeguard your territory and profitability.
Lease Disputes
Commercial lease disputes can disrupt your operations and incur significant costs. We represent franchisees in various lease-related conflicts, including disputes over rent increases, maintenance responsibilities, common area charges, lease violations, and eviction proceedings. Our goal is to protect your business location and ensure your lease terms are honored.
Misclassification
In some franchise systems, the line between an independent contractor franchisee and an employee can become blurred, leading to potential misclassification claims. We advise and represent franchisees facing allegations of employee misclassification, helping to clarify the legal status of individuals within the franchise system and mitigating potential liabilities.
Association and Class Actions
When multiple franchisees within a system experience similar issues or grievances, collective action can be powerful. We have extensive experience representing franchisees in the formation of associations and in pursuing class action lawsuits against franchisors for widespread misconduct. This enables franchisees to pool resources and present a unified front, thereby increasing their leverage and the likelihood of a favorable outcome.
Our Franchise Law Law Firm Near You Has Global Reach
Located in Plymouth Meeting, PA, we are ideally situated to serve franchisees throughout Montgomery County, including the communities of Plymouth Township and Whitemarsh Township. We understand the local business landscape and are easily accessible to our clients in the greater Philadelphia metropolitan area. However, our reach extends far beyond local borders.
Our firm has a national and international presence, representing franchisees across various franchise systems and industries, including food service, retail, automotive, and healthcare. This global perspective, combined with our local roots, allows us to deliver sophisticated and effective legal representation, regardless of your franchise’s size or location. We leverage our extensive network and knowledge of diverse legal jurisdictions to provide comprehensive support to our worldwide clientele.
Choose Luther Lanard, PC to Be Your Franchising Advocate
When franchisees search for legal support, they often find firms focused on franchisors, but we take a different path. Luther Lanard, PC’s mission is singular. We solve legal issues for franchisees.
- Proven results: Our attorneys bring over 50 years of combined experience in franchise law and related issues to help clients, from first-time owners to multiunit corporations. We have secured more than $20 million in judgments, settlements, and verdicts, achieving results through negotiation and taking disputes to trial when necessary.
- Client-focused: We pride ourselves on responsive, practical advocacy, working to resolve problems swiftly and cost-efficiently while keeping an eye on each client’s bottom line. Our approach is rooted in drafting win-win solutions, pushing legal arguments, and crafting tailored strategies to give franchisees a competitive edge.
- Strategic advantage: Our attorneys include former in-house franchisor counsel, giving us rare insight into franchisor tactics, transforming that insider knowledge into strength for our clients. Whether negotiating renewals, challenging termination or encroachment, or navigating lease and misclassification issues, we leverage deep industry experience to protect your investment.
- Nationwide and local presence: We provide nationwide and international representation from coast-to-coast offices and have deep roots in Montgomery County. Whether you are in Plymouth Township, Whitemarsh Township, or anywhere in the country, you will benefit from the resources of a national firm with the personal touch of a local team.
When you need a trusted legal partner dedicated solely to enfranchised owners, Luther Lanard, PC, delivers responsive, proficient, and mission-driven advocacy with franchisee-first representation.
What to Expect When You Contact Our Franchise Law Law Firm
Here is how we work at Luther Lanard, PC:
- Initial consultation: We listen to your concerns, review relevant documents, and identify how we can help.
- In-depth review: We perform detailed contract, lease, or transaction analysis and outline any risks or opportunities.
- Strategic planning: We propose legal strategies tailored to your needs and business goals.
- Ongoing support: Whether one-time representation or a long-term relationship, we provide dependable and proactive legal counsel.
When you reach out to us, you can expect a knowledgeable legal team committed to helping you make informed decisions and protecting your franchise investment.
The Franchise Law Landscape in Pennsylvania
Pennsylvania does not have a separate franchise statute, but federal franchise laws still apply, including the Federal Trade Commission’s (FTC) Franchise Rule. This rule requires franchisors to provide prospective franchisees with a detailed FDD at least 14 days before signing. However, general business and contract law, as well as unfair trade practices law under the Pennsylvania UTPCPL, can provide powerful remedies for franchisees facing allegations of fraud or misrepresentation.
Additionally, Pennsylvania courts have recognized various contractual and equitable defenses for franchisees, including unconscionability, good faith and fair dealing, and protection from overreaching termination or non-renewal clauses. With our thorough understanding of these legal standards, we can protect your rights in local, state, or federal court.
Let Luther Lanard, PC Protect Your Investment: Contact Our Franchise Law Firm Near Me Law Firm
Franchise ownership involves substantial financial and personal investment. You deserve a franchise law law firm near you that understands the nuances of the franchise model and will fight to preserve your rights and protect your business.
Contact us today to schedule a consultation with our franchise attorneys in Plymouth Meeting, PA. Let’s discuss how we can help you achieve your goals and protect your interests.